Law experts are warning Kiwis about the hidden costs of free and cheap wills that may end up hijacking a chunk of their assets in fees or causing family problems after a death.
New Zealand company Perpetual Giving is offering $20 wills for customers who lodge them online, with the money going to one of 220 charities of the customer's choosing.
However, the terms and conditions of the deal state customers must make the organisation, the philanthropic arm of will and estate planning company Perpetual Trust, the executor of their estate.
When the customer dies, Perpetual then takes a percentage of their overall estate as a fee for administering their assets which, depending on the value of the estate, could run to large amounts of money for the same work as for a much smaller estate.
The practice is common among companies that offer similar deals and New Zealand Law Society property law section chairman Andrew Logan said people should not be "seduced" by them.
"Arguably the same amount of work is needed to be imparted for administering a $200,000 estate as is for a $4 million estate," he said. "Just because you are giving a per cent, it doesn't mean they are having to do more work.
"When you have a corporate trustee as executor, are they necessarily providing more value for money? If you have your brother, mother, best mate or cousin in that role, a lawyer can guide them through prices and charges."
Mr Logan said it was also important to seek legal advice when writing a will, services that were often not included in cheap or free deals, to prevent costly, timely and emotionally wrought legal battles if family members or other parties contested that will.
"Wills can be particularly messy and extremely desolate for family relationships," he said. "They can be emotionally very charged and there are never any winners, people get very entrenched and very bitter."
A Perpetual spokeswoman said a percentage fee structure gave clients - some who "don't always trust the hourly rate theory" - a better idea of costs.
"By providing a scale percentage, our clients have some certainty of the costs following their death rather than wondering how the hourly charge process might be applied."
The average executor fee for the year to June 30 was 2.63 per cent of an estate's value, the spokeswoman said.
Public Trust general manager retail Matt Sale said it cost $195 to create a will with the well-known company, and the standard fee it charged for administering an estate was $1450.
"It depends on the size and complexity of the estate; there is a money and time dependence for all the extra work. The key point is we don't have commission-based charging."
He said there was a place for low-cost or free wills, but proper advice needed to be given.
"I believe there is a good place in the market for online wills and cheaper wills. However, they need to be considered carefully to make sure that it's really suitable for the individual."